Your current investment will mature in 2 years for $30,000, at which time you will reinvest the funds for 10 more years at 7% per year. What will be the value of your investment at the end of the 12th year?
Thank you for the opportunity to help you with your question!
Answer:A = $ 55,200.00Equation:
A = P(1 + rt)
First, converting R percent to r a decimalr = R/100 = 7%/100 = 0.07 per year,then, solving our equationA = 30000(1 + (0.07 × 12)) = 55200 A = $ 55,200.00The total amount accrued, principal plus interest,from simple interest on a principal of $ 30,000.00at a rate of 7% per yearfor 12 years is $ 55,200.00.
Content will be erased after question is completed.
Enter the email address associated with your account, and we will email you a link to reset your password.
Forgot your password?